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Deposit Delay Issue at Navy Federal - Tips To Avoid Future Problems


The largest credit union in the nation, Navy Federal Credit Union (Navy Fed), had members worried today due to deposits that were delayed or missing. Navy Fed was posting updates on the problem on its Twitter and Facebook pages. This morning on its Facebook page, Navy Fed issued this message:

We’re experiencing a delay with deposits today and we’re working through a solution. Be assured your accounts are safe.

Currently members are unable to call to speak with representatives. Online and mobile banking are available. We'll share updates here as we work to resolve.

Many members replied to these posts claiming that the problem wasn’t a delay but deposits that were missing. One member wrote:

It's more than DELAYED, mine was in my account yesterday, today it's gone!

Another member wrote:

My money was deposited yesterday and it just disappeared.

In addition to missing deposits, members were angered about how Navy Fed was communicating to members about the problem. One member wrote on Facebook:

This is definitely unacceptable NFCU you guys could have sent something to the members letting us know what’s going on! Also how is it right we can’t call in to see what’s going on I shouldn’t have to get on social media to find out why I don’t have my direct deposit!!!!

In the early afternoon, Navy Fed reported that the problem had been resolved:


At this time, all deposits are back to normal. To see your latest account details, use online and mobile banking. For account-specific questions, you can now call a member representative. We apologize for any inconvenience.

Concerns About the Safety of Your Money at Banks and Credit Unions

These kinds of problems occasionally occur at banks and credit unions. The institutions typically are able to resolve them within a day. If you’re worried about deposits disappearing or other mistakes or fraud that can occur, please review my article Safety of Your Money at Banks - Fraudulent Transfers. Regulations exist to protect your money. The most important thing for consumers to do is to regularly monitor their accounts and report any unauthorized transaction to the institution.

Deposit delay problems have the potential to trigger overdrafts by those depending on the deposit for payments or debit card purchases. It could also trigger overdrafts by those who are trying to transfer out money.

For those who did receive an overdraft charge at Navy Fed due to this problem, you should request for an overdraft reimbursement. I think it’s likely that Navy Fed will automatically reimburse members who received overdraft fees due to this deposit delay. If members received charges from their payees for insufficient funds due to this deposit delay, members should contact Navy Fed and ask for reimbursement.

Tips To Avoid Problems When Deposit Delays Occur

For the future, here are a few tips to avoid problems when deposit delays occur:

  • Maintain a cash cushion in your accounts. This is another example of why an emergency fund can be useful.
  • If you’re writing a check from your account or making an electronic payment or withdrawal, it’s a good idea to log into your account and confirm your available balance. As this example shows, deposits can be delayed.
  • Open a free checking account and savings account at an internet bank. Several internet banks offer both a free savings account and a free checking account without minimum balance requirements. It’s easy to link an online account to your existing checking account allowing for electronic transfer of funds between accounts.
  • Review your ChexSystem report annually. Most banks and credit unions use ChexSystems to determine if applicants will be approved. A negative record in ChexSystem can come from overdrawing accounts, and that can result in being blacklisted from opening bank accounts. Consumers can request a free copy of their report once a year from this ChexSystem page.

Navy Fed Overview

Navy Fed is considered to be the largest credit union in the world. Headquartered in Vienna, Virginia, Navy Federal has grown from its initial seven members in 1933, with more than 8,100,000 members and assets in excess of $95 billion.

Navy Fed has been popular with savers due to its long history of competitive CD and IRA CD rates. Over the years, Navy Fed has expanded its membership, and many people with just loose connections to the military can now qualify. Please refer to this review of Navy Fed’s latest offers for more details.

Navy Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.15% (excellent) based on September 30, 2018 data. In the past year, Navy Fed has increased its total non-brokered deposits by $7.84 billion, an excellent annual growth rate of 12.74%. Please refer to our financial overview of Navy Federal Credit Union (NCUA Charter # 5536) for more details.

Previous Comments
  |     |   Comment #1
According to a news article: "As for the possibility that anyone would be charged overdraft fees due to the problems, the [credit union] spokesman said, “Any resulting fees will be waived.”

From the articles I've read the only ways to find out that deposits had been delayed or had vanished were via facebook, Twitter, and being informed by payees that you payment had been rejected because you had a zero balance in your Navy account.

No info was posted on the credit union's website.
  |     |   Comment #2
Good work Ken, producing such a well informed article so quickly. Thank you.
  |     |   Comment #3
And, what does the NFCU outside auditor, internal compliance officer, and NCUA say about "all of this" and in order mitigate any potential run? Ken, time for high level interview...
mind melders
  |     |   Comment #11
#3 / #4
should go have a beer together
  |     |   Comment #5
as of 6:20 pm est, logging into the navyfedcu site, doesn’t even mention the problem, status...NOTHING. Amazing for the largest cu in usa
  |     |   Comment #6
Thanks to Ken's website for the update. I checked my Navy FCU accounts, especially the 40-month, 3.75% add-on CD I started just several days ago. Took exactly 31 seconds to do so. Absolutely nothing was amiss.
  |     |   Comment #12
Typical NavyFed. Their systems are SO outdated and useless. And while fees because of this may be waved, I'm sure that'll ONLY be if someone NOTICES it and calls them. I absolutely WILL NOT have NavyFed for anything like a loan or even checking account. Just CDs (which just sit there) and a Credit Card (which has protections). Not even a debit card. Nothing else. Experience over many years has taught me not to trust them (I've had to fight them for them to honor their own printed word, for them to mix COUNTLESS mistakes made, for "errors" in their system, etc), and honestly, I never feel my money is "safe" there (thus only the CDs which again just sit there without transactions except monthly interest postings -- which I always check, and a credit card, which has protections afforded, regardless of the institution that offers it). This is a place where you want to be VERY CAREFUL in how you deal with them. That's why the ONLY things I now have with them are CDs and a Visa card. Maybe one of these days they'll change, but this stuff has been going on for years, and I expect they never will.
  |     |   Comment #14
Could we please all follow Ken Tumin's instructions, and use this Comment space to comment on the specific article related to Navy FCU. As Tumin recently wrote in his most recent "Federal Reserve, the Economy and CD Rate Forecast":
"Often economic discussion leads to political discussion, and that can create lots of comments which drown out comments on deals and rates. To avoid that, please limit comments related to the Fed, the economy and politics to these blog posts."
So, please take such comments to the appropriate place -- https://www.depositaccounts.com/blog/fed-deposit-interest-rate-predictions/

Please let those of us who wish to comment on the situation at Navy FCU do so, without having to wade through extraneous material that Tumin has said belongs elsewhere.
Thank you.
  |     |   Comment #17
I have no kind words for NFCU. They cheated me badly, failing to keep written promises. When I telephoned and spoke with a supervisor she promised to get back to me within two days. That was three weeks ago. Heard nothing. Nothing at all.

You're probably thinking, why did I not call back? Well, that call with the supervisor was not my first attempt to elicit behavior in accord with their promises. Each time I was stonewalled. At this point I'm simply giving up, having learned my lesson. Where NFCU is concerned, I'm most assuredly not a fan.  Dealing with them, for me, has been far worse than dealing with the big money center banks.  Some credit union!  I have a great many relationships with financial institutions, almost all really great.  I've not run into anything like NFCU since trouble many years ago at FNBO.  Avoid.
  |     |   Comment #31
What did they do to you? They have been great for me.
  |     |   Comment #32
i think he got burned playing the credit card manufactured spending game
  |     |   Comment #19
So is it safe to ACH my $5500 for my 2018 contribution on the 3.75% 40 month?
  |     |   Comment #20
Who knows? People assume that programmers can produce a competent product every time. That is sheer ignorance. I have come across a large number of people who should not be in the IT industry. But like people working in nursing homes, somebody has to fill the work positions.
  |     |   Comment #21
I'm not really sure I understand what went wrong with the deposit issue here at NFCU.

I noticed at a CU that I bank with there was a message pop up on the main screen (a banner) for the last 7-10 days warning about a 'late opening' on December 19th, this past Wednesday, due to some scheduled software update. Is it possible that NFCU also was updating software and that they failed to warn customers prior?

The only details given at my CU for the 12/19 update were as follows: Your normal banking, direct deposits and bill pay debits will be delayed this day, however they will post before the end of the day. You will see them posted to your account when you log on 12/20.
  |     |   Comment #22
When I checked in yesterday (20) I noticed my SS direct Deposit had posted twice, once as normal on Wed and again Thur. I sent a message and received answer back within an hour and the problem was corrected. It looks normal this morning.
  |     |   Comment #23
Waiting for Navy to offer all CD's to every member not just IRA crowd
  |     |   Comment #27
I hear you Hoody, but talk with your feet and consider moving to USSFCU. You can get a 5 year non IRA rate better than Navy offers.
  |     |   Comment #28
But less than the 40 month rate
  |     |   Comment #30
The only problem is the 40 month rate is IRA money only.
  |     |   Comment #33
Hoody...I called PenFed when they offered the IRA cd and asked when they are going to offer a CD for non-iras, the woman told me they are going to offer one in January but she didn't know the details yet.
  |     |   Comment #34
thanks for the info, but I don't have any accounts with PF. And they don't have any local branch around here either. But I already planned to hold up till after the new year to see how things shake out as it is. I rate chase up to a point, I stay local, and like to confront a human when I need to, not get into a fit using email. Besides at this point of life I have the funds to pay all my bills, only thing that will clean me out is if I end up in a nursing home, but by than I really won't care much either, it ain't goin with me, know what I mean :)
  |     |   Comment #36
Sorry Hoody, I meant Navy Fed...:)
  |     |   Comment #37
LOL, well heck Mak, thanks for that update, that makes a lot of difference lol. I'll be looking for that, maybe with this last rate rise it may be just a bit better than the IRA one :)

The other CU I use around here will match them , but I don't much care for the quarterly payouts of interest at that one, I like it monthly like at Navy, which I have transferred into my MNYMkt I keep in both CU's for that reason.

Funny the rep I know at my local Navy hasn't mentioned that to me.
  |     |   Comment #38
Hoody. I hope the rep I talked to wasn't goofing on me but she seemed like she knew something... another week and we'll know.
  |     |   Comment #29
My ex and I joined when in Vegas around 12/8. They sent a letter to both of us (separate accts.) earlier this week saying we needed more info. to be able to open account. We both called and they said to disregard the notice, that both accounts were open. I got a statement, he didn't. Now a few days later all this is happening. Must be affecting more of the system then what they are letting on. Hopefully it's corrected.
  |     |   Comment #35
I thought many people liked Navy CU. Guess I was mistaken
  |     |   Comment #42
They have been fine to me.
  |     |   Comment #39
Checked this morning, and still there is a problem, my money has not been deposited, and the lady on the phone with customer service while frazzled obviously gave short answers with no substance. Saying it should be resolved today, but couldn't tell me anything.
  |     |   Comment #40
Yeah I had a deposit scheduled for today. I checked Wednesday it was gone yesterday and no deposit today. Literally my first issue with NFCU. But it’s a significant one
  |     |   Comment #41
still don't have my MONEY!!!

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